Cultural Receptivity: Predicting Consumption in the International Beverage Market

Abstract

The purpose of this study was to further explore the potential of the Hofstede paradigm as a predictor, and to uncover some meaningful interaction effects. Hofstede’s Cultural Dimensions as predictors, rather than correlates, of consumer behavior at the national level are presented and discussed as an example. Potential for methodological application cuts across many fields. National cultures and volume consumed were studied in these empirical analyses of the international beverage market. The purpose was to discern patterns of variability in nations’ receptivity to products offered by The Coca-Cola Company, as predicted by Hofstede’s six cultural dimensions, urbanization, and income using regression analyses. Results indicated that, including Hofstede’s recently published dimension of Indulgence Versus Restraint (IVR), cultural dimensions alone predicted up to 63% of the variability in volume consumed. Predictive models containing Uncertainty Avoidance Index (UAI), Individualism (IDV), and variable interactions were worthy challengers to models including urbanization, a known correlate with product distribution and advertising. This research should be of particular interest to any multi-national company, marketing researchers or practitioners, psychologists, sociologists, and behavioralists interested in the cultural context of acceptance. Results for BRIC countries, Mexico, Indonesia, and other nations were discussed.

Keywords: Culture, Coca-Cola, Coke, Consumption, Equation, Hofstede, International, Marketing, Predict, Regression

JEL Classification: M16